Tax-efficient Structuring Advice

We saved our client £12,102 in tax without reducing her £120K income. A client running a successful consultancy came to us feeling frustrated. 👉 She was taking £120K a year (£12,570 salary, the rest in dividends). 👉 Her tax bill was way too high and she couldn’t figure out why. 👉 She was losing thousands to HMRC unnecessarily. When we broke down the numbers, the problem became clear. Here's what her original income structure looked like: 💰 Total Withdrawals: £120,000 💰 Salary: £12,570 💰 Dividends: £107,430 At first glance, it looked simple. But here’s where things went wrong 👇 ❌ Loss of Personal Allowance Earning over £100K meant she was losing £1 of personal allowance for every £2 earned over £100K. She lost her full £12,570 personal allowance which cost her an extra £2,514 in tax. ❌ High Dividend Tax Since she took all dividends herself, her taxable dividend income was £106,930 (after the £500 dividend allowance). She was losing thousands just because her income wasn’t structured efficiently. Here’s what we did to fix it: ✅ Transferred Shares to Her Husband Her husband was already helping in the business, so we made him a shareholder and director. This allowed us to use both their tax-free allowances and lower tax bands. ✅ Split the Dividends Instead of her taking all £107,430 in dividends alone, we split them equally (£53,715 each). This significantly reduced the amount of dividends being taxed at 33.75%. ✅ Restored Her Personal Allowance By reducing her individual taxable income below £100K, she reclaimed her £12,570 personal allowance, saving her £2,514 in tax. Here’s how much she actually saved: 📌 Restored Personal Allowance Savings: £12,570 × 20% basic rate = £2,514 saved 📌 Dividend Tax Savings (Before vs. After): - Old Setup (Her Taking All Dividends) Taxable dividends: £106,930 Tax calculation: £37,700 × 8.75% = £3,298.75 £69,230 × 33.75% = £23,364.13 Total Dividend Tax: £26,662.88 - New Setup (Splitting Dividends Between Both Spouses) Each spouse’s dividends: £53,715 Taxable amount per person: £53,215 (after £500 allowance) Tax per person: £37,700 × 8.75% = £3,298.75 £15,515 × 33.75% = £5,238.56 Total tax per person: £8,537.31 Total tax for both spouses: £8,537.31 × 2 = £17,074.62 📌 Total Dividend Tax Savings: Old Tax: £26,662.88 New Tax: £17,074.62 Saved: £9,588.26 📌 Total Annual Tax Savings: £2,514 (personal allowance) + £9,588.26 (dividends) = £12,102.26 The Result: 💰 Same £120K income, but £12,102 less in tax. 💰 More disposable income as a couple. 💰 A tax-efficient business setup that works for them. Don’t assume your current setup is the best one. A little planning can save you thousands every single year. Think you’re overpaying tax? Drop me a DM.

You don’t need to earn more. You need to keep more. Most people focus on income and ignore what taxes quietly take away. The real game: It’s not what you make. It’s what you keep. Start here: 1. Earn Through Tax-Efficient Structures ↳ Structure determines how much tax you pay ↳ Use businesses instead of personal income streams ↳ Plan income types before earning begins 2. Capture Every Legitimate Deduction ↳ Missed deductions reduce net income ↳ Track income-related expenses consistently ↳ Separate personal and business spending clearly 3. Leverage Depreciation Strategically ↳ Paper losses offset real income ↳ Invest in assets with depreciation benefits ↳ Accelerate depreciation where legally allowed 4. Reinvest to Defer Taxes ↳ Reinvestment delays taxes and compounds growth ↳ Roll profits into income-producing assets ↳ Avoid unnecessary taxable events 5. Optimize Income Timing ↳ Timing impacts how you’re taxed ↳ Shift income across tax years strategically ↳ Align timing with tax brackets 6. Use Tax-Advantaged Accounts ↳ Reduce taxable income legally ↳ Maximize contributions annually ↳ Use retirement, health, and education accounts 7. Protect Gains with Smart Planning ↳ Poor planning creates tax leakage ↳ Plan exits before investing ↳ Use long-term strategies for lower taxes Tax strategy isn’t a one-time move. It’s a loop you repeat every year. Earn. Protect. Reinvest. Repeat. Follow me Marc Henn for more. We want to help you Retire Early, Supercharge Your Cash Flow, and Minimize Taxes. Marc Henn is a licensed Investment Adviser with Harvest Financial Advisors, a registered entity with the U. S. Securities and Exchange Commission.

I’ve helped clients save over £4 million in taxes. And it’s not because they earned less or cut corners. It’s because they understood how to use tax rules to their advantage. Here are 10 strategies I give to my clients: For Individuals: 1. Maximise pension contributions to reduce your taxable income. ↳ Accounts like SIPPs offer generous tax relief on contributions. 2. Take advantage of your tax-free allowances every year. ↳ Use personal, dividend, and capital gains exemptions before they reset. 3. Invest in tax-efficient accounts to grow your savings tax-free. ↳ ISAs, for example, shield interest, dividends, and gains from tax. 4. Claim deductions for eligible expenses if you’re self-employed. ↳ Things like office costs and equipment can reduce your tax bill. 5. Spread capital gains over multiple years to save more. ↳ This lets you maximize annual exemptions without overpaying. For Businesses: 6. Sell your business through an Employee Ownership Trust (EOT). ↳ This can eliminate capital gains tax entirely on the sale. 7. Claim R&D tax credits for innovation in your business. ↳ Even small projects can qualify for these lucrative credits. 8. Use salary sacrifice schemes to cut payroll taxes. ↳ Pensions, electric cars, and childcare vouchers all save money. 9. Pay dividends instead of a higher salary to reduce tax. ↳ Dividend income is often taxed at a lower rate than wages. 10. Invest in capital assets to use the Annual Investment Allowance. ↳ This allows 100% tax relief on qualifying purchases. Tax savings aren’t about avoiding what you owe. They’re about understanding the rules and using them wisely.

High-income earners don't have a tax strategy problem. They have an integration problem. After years working with entrepreneurs, executives, and professional athletes, I've seen the same pattern repeatedly: smart, successful people paying far more in taxes than necessary, not because they lack strategies, but because those strategies aren't orchestrated together. A Solo 401(k) is brilliant. An S-Corp election is powerful. QSBS planning can be life-changing. But none of these work in isolation. And most advisors treat them that way. Here's what integrated tax planning actually looks like: It's coordinating S-Corp wages with QBID thresholds while maximizing retirement contributions and PTET deductions, all in the same year. It's building a Solo 401(k) with Mega Backdoor Roth capability, then timing conversions during intentionally engineered low-income years. It's structuring C-Corp ownership early for QSBS treatment, multiplying the benefit through trusts, and planning the exit before you start the company. The strategies most people get wrong: S-Corps operated on autopilot (the election is easy; the optimization isn't) QBID left on the table because wages and entity structure weren't coordinated Cash Balance Plans funded without a Roth conversion roadmap Charitable giving done reactively instead of strategically through DAFs and CRTs Commercial real estate owned personally when it should generate rental losses against business income None of these are obscure. They're all available. But they require something most advisors don't provide: proactive architecture across your entire financial life. Tax planning isn't filing. It's not even strategy. It's engineering: coordinating entities, income timing, deductions, and long-term objectives into a system that compounds your wealth instead of eroding it. At Moment Private Wealth, this is the standard we hold for every athlete, founder, and high-income family we serve. Because when your advisor is thinking three moves ahead, you're not just compliant, you're capital efficient. If your current plan feels like a collection of disconnected tactics, that's probably because it is.

Most Family Offices don’t lose wealth by making poor investment decisions—they lose it through inefficiencies. Taxes, fees, and outdated structures quietly erode returns, often without investors realizing it. The most sophisticated Family Offices have figured this out. Instead of focusing solely on higher returns, they prioritize something far more impactful: Structural Alpha. This isn’t about choosing the best hedge fund or private equity deal. Structural Alpha is about optimizing how investments are structured to maximize after-tax returns and eliminate inefficiencies. It’s a way to achieve stronger outcomes not by taking on additional risk but by being more strategic about how capital is deployed. A prime example is Private Placement Life Insurance (PPLI), a tax-efficient structure that allows Family Offices to significantly reduce the tax burden on investments like credit funds. Without it, returns on a credit strategy might shrink from ten percent to seven percent after taxes. With PPLI, those gains can be preserved for a fraction of the cost. Another example is tax-aware investing. Tax-loss harvesting extends far beyond its original application, allowing Family Offices to structure portfolios in a way that minimizes tax liabilities without compromising performance. For Family Offices, this isn’t just an advantage—it’s an essential approach to wealth management. Family Offices exist to preserve and grow generational wealth, yet many still operate within traditional investment frameworks that leave money on the table. By integrating Structural Alpha strategies, they can improve after-tax returns without taking on unnecessary risk, reduce compounding inefficiencies, and ensure long-term capital preservation through smarter structuring. The most forward-thinking Family Offices aren’t just searching for strong investments—they’re refining how they invest. Structural Alpha isn’t a trend; it’s a shift in approach that separates those who quietly optimize their wealth from those who unknowingly give a portion of it away.

Running a business can be one of the most powerful wealth building and tax planning tools available But only if you do it right I see the same early mistakes over and over, even from very successful business owners If you want to set yourself up correctly from Day 1 (or fix it before it gets expensive), here’s what matters most 👇 1. Get your entity election right This is foundational. The right structure can dramatically reduce taxes and expand planning opportunities The wrong one can mean: - Unnecessary self-employment taxes - No access to PTET - Reduced or eliminated QBID - Limited retirement contribution options - No QSBS - Less tax efficient for reinvesting and growing the business This decision should be proactive and can change as your business evolves 2. Keep business and personal finances completely separate Commingling accounts is one of the most common and costly mistakes It can: - Create audit risk - Destroy LLC liability protection - Turn tax prep into a nightmare - Cost you far more in professional fees and your time Clean separation from Day 1 saves money, time, and stress. 3. Track all your expenses Most business owners leave money on the table simply because they don’t track well Good tracking: - Maximizes legitimate deductions - Makes tax planning actually work - Gives you clarity on real cash flow The easiest time to do this is before the business gets “busy.” 4. Save for taxes monthly This is non-negotiable I see too many high-income business owners fall behind, then have to scramble to make things work Treat taxes like a fixed expense, not a surprise This is a huge reason we give clients new tax updates at every call 5. Understand safe harbor taxes and pay your estimates Underpayment penalties are completely avoidable. You need to Know: - Your safe harbor number - Your quarterly payment schedule - What you will get in from withholding - How income volatility affects estimates If you don’t know these numbers, you’re guessing And guessing is expensive 6. Do real tax planning 2–3x per year (not just in April) One of the biggest advantages of business ownership is tax flexibility But it only works if you plan: - Mid-year - Again in Q3 - Then finalize in December Tax planning is proactive. Tax prep is reactive 7. Setup the right retirement accounts Set up the right retirement accounts Not all retirement plans are created equal. In most cases: - Solo 401(k) > SEP IRA - 401(k) > SEP IRA and Simple's The wrong setup can cost you tens of thousands per year in missed contributions And limit Roth strategies Owning a business gives you incredible leverage... if it’s structured correctly But I see so many overpaying in taxes because they do not invest in tax planning

Two decades ago, your family may have acquired property in a quiet town. Today, that same plot sits in an increasingly high-demand urban zone, and its value has likely appreciated significantly. But so has the complexity of selling it. One key consideration is Capital Gains Tax (CGT). In Kenya, CGT is levied at 15% of the net gain, and without proper documentation, that figure can become a painful closing cost. Firstly, to protect your gain and reduce your tax exposure, maintain a clear and defensible paper trail: -- Land rent and rates receipts to establish ownership history and compliance -- Tax records, including past declarations and any exemptions claimed -- Valid receipts for improvements, structural upgrades, not cosmetic tweaks -- Utility statements to verify occupancy and usage timelines -- Financial statements, especially for income-generating property -- Legal costs from acquisition to sale, which are deductible if properly recorded Secondly, this is where proactive planning makes all the difference: -- Before listing, model your potential tax exposure. This informs pricing strategy, negotiation posture, and helps avoid last-minute surprises. -- If documentation is incomplete, work with your lawyer to rebuild a credible cost basis using affidavits, bank statements, or third-party confirmations. -- For family-held assets, consider whether transferring ownership to a trust or company vehicle could offer succession or tax planning advantages, especially if future sales are anticipated. -- Engage a Tax Advisor early for smarter structuring, better documentation, and peace of mind. Legacy assets deserve legacy-minded planning. 

The same oil well. 3 investors. 3 different outcomes. One banks quarterly cash flow and tax write-offs. Another builds wealth through consolidation. The third? Chasing venture-level returns. What separates them isn't the asset. It's structure. While everyone analyzes fundamentals - rising demand, constrained supply, underinvestment - sophisticated investors focus on a different question: How do I participate? Because deal structure creates entirely different economics from the same barrels. Here's what most investors miss: there's a decision beyond asset selection. How you participate matters more than what you buy. Structure determines three critical outcomes: • When you get paid: now, later, or both • Tax treatment: ordinary, sheltered, or deferred • Wealth type: cash flow, compounding, or liquidity The framework I use breaks oil and gas into 3 distinct layers: Layer 1: Offshore Exploratory The venture capital approach to energy. Drilling new reserves, often deepwater, requiring massive infrastructure. High-risk, high-reward. Best for asymmetric outcomes and maximum tax write-offs. Layer 2: Proven Production This is where most income investors operate, but few understand the timing advantage. Take a well in the Permian Basin producing 100 barrels daily. The geology is mapped. The infrastructure exists. You're buying predictable output, not potential. But here's what changes the math: The IRS lets you deduct a significant portion of your investment in year one through intangible drilling costs and depreciation. This means immediate active income offsets while generating quarterly distributions. The sophisticated play? Deploy capital in Q4 to offset your highest-earning year, then collect cash flow for the next 7-10 years. Layer 3: Roll-Up Strategy Acquiring smaller producers at a discount, adding operational discipline, consolidating under one platform. Value creation through efficiency, data, scale. Best for tax-efficient compounding and eventual liquidity events. Most sophisticated investors operate between Layers 2 and 3. Your goals determine your structure. A tech executive earning $450K annually needs active income offsets now and quarterly distributions. Layer 2 makes sense. The tax benefits are immediate. The cash flow is predictable. A serial entrepreneur who sold his company and is thinking in decades might layer in Roll-Up strategies. Less concerned with immediate distributions, more focused on compounding and tax-efficient wealth building. For accredited investors who think in frameworks, explore more opportunities at https://walkerdeibel.com/

📊 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗧𝗮𝘅 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗨𝗻𝗱𝗲𝗿 𝘁𝗵𝗲 𝗢𝗕𝗕𝗕 𝗔𝗰𝘁 – 𝗔𝗿𝗲 𝗬𝗼𝘂 𝗥𝗲𝗮𝗱𝘆? 📝 With the 𝐎𝐧𝐞 𝐁𝐢𝐠 𝐁𝐞𝐚𝐮𝐭𝐢𝐟𝐮𝐥 𝐁𝐢𝐥𝐥 (𝐎𝐁𝐁𝐁) officially passed, the clock is ticking on some of the most valuable planning opportunities we’ve seen in years. ✅ Here are 𝟓 𝐡𝐢𝐠𝐡-𝐢𝐦𝐩𝐚𝐜𝐭 𝐦𝐨𝐯𝐞𝐬 business owners and CFOs should be evaluating 𝐫𝐢𝐠𝐡𝐭 𝐧𝐨𝐰: 1️⃣ 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐒𝐀𝐋𝐓/𝐏𝐓𝐄𝐓 ����𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐁𝐞𝐟𝐨𝐫𝐞 𝟐𝟎𝟑𝟎 👉 Take full advantage of the temporary $40K SALT cap by electing 𝐏𝐓𝐄𝐓 (𝐏𝐚𝐬𝐬-𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐄𝐧𝐭𝐢𝐭𝐲 𝐓𝐚𝐱) in qualifying states. This is a golden window for tax efficiency. 2️⃣ 𝐂𝐚𝐩𝐢𝐭𝐚𝐥𝐢𝐳𝐞 𝐨𝐧 𝐁𝐨𝐧𝐮𝐬 𝐃𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧 & 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟕𝟗 👉 Accelerate asset purchases and improvements to benefit from 𝟏𝟎𝟎% 𝐛𝐨𝐧𝐮𝐬 𝐝𝐞𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧 and a raised $𝟐.𝟓𝐌 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟕𝟗 𝐜𝐚𝐩. Review 5-year capital investment plans now. 3️⃣ 𝐃𝐨𝐦𝐞𝐬𝐭𝐢𝐜 𝐑&𝐃 𝐑𝐞𝐚𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭 👉 R&D expenses are once again 𝐟𝐮𝐥𝐥𝐲 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐛𝐥𝐞 (𝐢𝐟 𝐝𝐨𝐦𝐞𝐬𝐭𝐢𝐜). Shift or prioritize spending within the U.S. to maximize the benefit. 4️⃣ 𝐀𝐝𝐣𝐮𝐬𝐭 𝐖𝐨𝐫𝐤𝐟𝐨𝐫𝐜𝐞 𝐂𝐨𝐦𝐩𝐞𝐧𝐬𝐚𝐭𝐢𝐨𝐧 𝐌𝐨𝐝𝐞𝐥𝐬 👉 With 𝐭𝐢𝐩𝐬 (𝐮𝐩 𝐭𝐨 $𝟐𝟓𝐊) and 𝐨𝐯𝐞𝐫𝐭𝐢𝐦𝐞 (𝐮𝐩 𝐭𝐨 $𝟏𝟐.𝟓𝐊) now tax-free, there’s room for hybrid pay structures—especially in 𝐫𝐞𝐭𝐚𝐢𝐥, 𝐡𝐨𝐬𝐩𝐢𝐭𝐚𝐥𝐢𝐭𝐲, 𝐥𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬, and more. 5️⃣ 𝐑𝐞𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐕𝐞𝐡𝐢𝐜𝐥𝐞 𝐅𝐥𝐞𝐞𝐭𝐬 & 𝐋𝐨𝐚𝐧𝐬 👉 Interest on 𝐔.𝐒.-𝐦𝐚𝐝𝐞 𝐯𝐞𝐡𝐢𝐜𝐥𝐞 𝐥𝐨𝐚𝐧𝐬 is now deductible. Explore smart structuring of your fleet financing for added tax leverage. 📌 𝐀𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐞𝐬: 🔸 Move fast on bonus depreciation 🔸 Optimize comp structures for tax savings 🔸 Time big investments wisely 🔸 Start prepping for 2030 when the SALT cap reverts to $10K 💡 Now is the time to review 𝐞𝐧𝐭𝐢𝐭𝐲 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐬, 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲, 𝐚𝐧𝐝 𝐞𝐯𝐞𝐧 𝐞𝐱𝐩𝐥𝐨𝐫𝐞 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐙𝐨𝐧𝐞 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬 as part of a forward-looking tax playbook. 📬 Want to discuss how these changes affect your 2025+ road map? Let's connect. #OBBB #TaxPlanning #CPAInsights #BonusDepreciation #PTET #SALT #StrategicFinance #Section179 #R&D #OpportunityZones #TaxUpdate #BusinessGrowth #CFOInsights #StartupStrategy